Market Structure in Aircraft Manufacturing

mercenaryiseplace structure in the aircraft manufacturing labor The market for commercial passenger aircraft is an oligopoly dominated by Boeing and Airbus. Critically evaluate competitive factors which exercise firm growth, tender product knowledge and pricing in the commercial aircraft market. 60% How is the commercial aircraft market different from the market for personalised computers, In terms of market structure, new product design and growth opportunities? 40% determine that you make use of an appropriate political economy based theoretical framework Which employs able concepts developed in this course, as hearty as appropriate examples?Oligopoly is a comprise of market structure known as imperfect competition a) There atomic number 18 a littler number of players or firms which have and exercise market business office for example supermarkets in the uk. In aircraft manufacturing industry it is even more concentrated there is only two major players namely Airbus and Boeing. Implications are that the importance of a small number of large customers makes it sensible for suppliers to trust heavily in close pertinacious term relationships with them. Key account anxiety is essential considering 80% of output is existence to 20% of customers. )Products are differentiated which allows firms to scathe them differently. c) High capital usage(and large pertinacious costs)and research and development mean that the optimal firm size is very large, resulting in a small number of sellers(producers/firms). d) extensive impacts of patents and research and development costs, as soundly as intellectual property rights. e) Economies of outmatch f) High government regulation(health and safety)recently Air has had a number of problems with Royce Royce engines on the A380 which has led to a number of planes being grounded